MUMBAI: India will not curb exports of cotton despite a surge in
domestic prices that has undermined margins of textile makers still
recovering from the financial crisis, a senior government official said…“There
is no plan to curb exports,” A B Joshi, textile commissioner and
chairman of Cotton Advisory Board (CAB) told Reuters in a written reply
late on Tuesday…Textile trade groups have been demanding
restrictions on cotton exports since the beginning of the year in
October. The four months since have seen cotton exports more than
treble…The world’s second biggest producer exported 2.79
million bales of 170 kg each in the first four months, up 245 per cent
compared to the corresponding period a year ago. ..“Major cotton
importing countries for raw cotton in the cotton season 2009/10 are
China, Bangladesh, Pakistan, Indonesia, Vietnam, Turkey, Taiwan and
Vietnam,” Joshi said…The industry is expecting an active demand from neighbouring countries to continue during rest of the year…Trade
associations estimate annual exports of the fibre could hit 7 million
bales, though Joshi maintained that India’s annual export target of 5.5
million bales, set at the beginning of the season, has not yet been
revised…But industry officials, who are also members of CAB,
expect the upward revision in the export target in the next CAB
meeting, likely before the end of February…Indian exports are
driven by a recovery in global consumption led by major importer China,
where mill consumption may rise 15 per cent according to International
Cotton Advisory Committee. ..Current lint prices of different varieties are up 23-43 per cent from last year, according to Cotton Corp of India…Large
scale overseas demand has also hardened the average export price.
“Average export price of raw cotton in first four months (Oct-Jan) of
2009-10 is 69.46 rupees ($1.5 ) per kg compared to 68.45 rupees for the
year ago period,” he said…US cotton futures jumped more than 1
per cent on Tuesday, hitting six-week highs, as a broad rally in
commodities channeled buying interest into the fibre market, traders
said…India exported only 3.5 million bales in 2008/09, sharply
lower than 8.5 million bales exported a year before, as the government
increased support prices by 40 per cent, affecting the country’s lower
price advantage, analysts and traders said…The south Asian country is likely to harvest 30 million bales of cotton in 2009/10, up from 29 million bales produced last year”
Date:2/18/2010
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